September 21, 2025 — Bushraqasim follow me everyone
The U.S. Federal Reserve’s recent and expected interest rate cuts could send shockwaves through the crypto market — and most investors aren’t ready for it, warns economist Timothy Peterson.
Following the Fed’s first rate cut of 2025 — a 25 basis point reduction on September 17 — Peterson told Cointelegraph that markets are significantly underestimating how quickly rates could fall in the coming months.
> “There has never been a gradual reduction in rates like that currently envisioned by the Fed,” Peterson said. “It will jolt Bitcoin and alts up substantially… likely within the next 3–9 months.”
Bitcoin (BTC) surged to $117,000 shortly before the Fed’s announcement but has since settled around $115,570, according to CoinMarketCap. Despite the short-lived spike, Peterson believes that “the surprise effect” of rapid rate cuts could lead to a more sustained rally.
More Rate Cuts on the Horizon
According to the CME FedWatch Tool, markets are pricing in a 91.9% probability of another 25 basis point cut at the Fed’s next meeting on October 29. While some institutions like Standard Chartered had forecasted a more aggressive 50bin-point cut in September, the Fed opted for a moderate approach — a move anticipated by firms such as Goldman Sachs.
Still, Fed officials have signaled two more cuts by year’s end, though Fed Chair Jerome Powell cautioned that monetary policy is “not on a pre-set path.”
Bullish Setup for Crypto
Lower interest rates typically favor risk-on assets such as cryptocurrencies, as returns from traditional fixed-income investments decline. Bitcoin is already up 1.03% over the past 30 days, and analysts are watching closely to see if it will break toward $120,000 or higher in response to a looser monetary environment.
As the Fed shifts gears, the crypto market may face a sharp upside — one that only a few are currently braced#Binance #Squar2earn @Binance Global Türkçe $BTC